A Calm and Strategic Response

Host Steven Chia opened the conversation by addressing the uncertainties that Singapore now faces due to the aggressive trade policies introduced by the Trump administration. He posed a vital question: “What will Singapore do in light of these developments?”

Responding to this, Minister of Education Chan Chun Sing emphasized the importance of maintaining composure amid challenges. 'Staying calm is crucial,' he stated, underscoring that a collective sense of stability is vital for effective decision-making.

Building a Strong Negotiation Team

Minister Chan highlighted that Singapore's ability to negotiate favorable trade agreements hinges on the credibility and strength of its negotiating team. 'People will only take us seriously if they believe we can be trusted to deliver on our commitments,' he explained. This sentiment reflects Singapore’s longstanding emphasis on rule-based international relations, which has historically bolstered its attractiveness as a business hub.

Leveraging Singapore's Unique Strengths

Discussing what has made Singapore a desirable destination for investment, Chan pointed out the nation’s track record of playing by established rules. 'We provide a stable environment for investors and assure them that their capital and intellectual property are protected,' he noted. In a world characterized by economic volatility, these attributes may even attract more interest from global investors.

Making Friends Globally

Chan also emphasized the importance of diversifying Singapore's trade partnerships. Noting the considerable size of the US and Chinese economies, which combined account for about one-third of the global GDP, he urged the need for Singapore to seek out relationships with the other two-thirds of the world. 'We must continue to forge friendships and expand our trading network,' Chan said, recognizing that the global market offers vast opportunities beyond just the two major economies.

In conclusion, the discussion on the Deep Dive podcast reveals that while Trump's tariffs present challenges for Singapore, strategic planning, strong negotiation capabilities, and a focus on global partnerships could mitigate potential negative impacts on jobs, wages, and prices.

Stay tuned for new episodes of Deep Dive every Friday, exploring the latest in global economic trends and their implications.